The balanced scorecard is an effective tool for managing and improving performance, but only if it is:
A) used by managers who recognize that relying exclusively on financial measures benefits the organization in the long run.
B) implemented using a performance measurement orientation.
C) used exclusively by the top levels of the organization.
D) clearly linked to a well-defined organizational strategy and goals.
E) used in organizations that adopt a hierarchical control process.

Question

Quizplus · Accepted Answer

The balanced scorecard is most effective when it is clearly linked to a well-defined organizational strategy and goals. This ensures that the performance indicators being measured are aligned with the overall direction of the organization. Simply using financial measures or restricting its use to only top management will not be as effective as when it is implemented using a performance measurement orientation and used at all levels of the organization. Additionally, the use of a hierarchical control process is not necessary for the effectiveness of the balanced scorecard.

The Balanced Scorecard Is an Effective Tool for Managing and Improving